Transcontinental (TCL-A) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 revenues were $2,743.9 million, down 2.5% year-over-year, with net earnings attributable to shareholders rising 41.0% to $171.0 million ($2.04 per share), and adjusted net earnings per share up 10.7% for the year.

• Adjusted net earnings grew 7.8% to $217.2 million ($2.59 per share), with adjusted operating earnings before depreciation and amortization at $466.2 million.

• Cost reduction initiatives and disciplined execution improved profitability and safety, with a 39% reduction in accidents year-over-year.

• Strong free cash flow enabled net debt reduction despite acquisitions.

• The sale of the Packaging Sector for $2.1 billion was announced, expected to close in Q1 2026, marking a major strategic shift.

Financial highlights

• Q4 revenues were $732.4 million, down 2.3% year-over-year, mainly due to lower volumes in Retail Services and Printing and the sale of industrial packaging operations.

• Q4 adjusted EBITDA was $137.6 million (down 3.2%), and adjusted EPS improved 3.8% to $0.82.

• Full-year adjusted EPS grew 10.7% to $2.59, driven by improved profitability and lower share count.

• Operating cash flow in Q4 was $172.5 million, with positive working capital of $64.9 million.

• CapEx for the year was close to $100 million, a $22 million reduction from the prior year.

Outlook and guidance

• The sale of the Packaging Sector is expected to close in Q1 2026, pending regulatory approvals.

• Fiscal 2026 is expected to deliver stable adjusted EBITDA from continuing operations, with lower volumes in traditional activities partially offset by ISM and in-store marketing growth.

• ISM activities are projected to grow both organically and through acquisitions; Canada Post labor conflict impact should be limited to the first five weeks of Q1 2026.

• CapEx for 2026 is expected to be around $60 million; cash taxes around $30 million.

• Continued strong cash flow generation is expected to support further debt reduction and shareholder returns.